AB InBev plans to cut jobs after SABMiller takeover

More details are emerging about Anheuser-Busch InBev’s takeover of rival brewer SABMiller, which is expected to close in a few weeks. Documents from both companies provide a glimpse of job cuts, brand growth and reasons behind the roughly $100 billion deal.

AB InBev says it will cut at least 3 percent of the combined company’s global workforce. Those reductions will be phased in over three years. The Budweiser brewer has roughly 150,000 employees in 26 countries, while SABMiller’s workforce totals around 70,000 in more than 80 nations.

The Anheuser-Busch St. Louis brewery opened in 1852 and is expected to remain a hub for AB InBev's North American operations.

“It is clear that job losses in the Combined Group will be required,” SABMiller Chairman Jan du Plessis outlined in a letter to shareholders.

“And that AB InBev intends to implement the rationalization, relocation or closure of a number of SABMiller’s global and regional offices.”

There are some units, including sales divisions, where post-combination plans are not in place because of regulatory guidelines. More job reductions could occur in those areas as AB InBev aims to save more than $1 million a year by the end of March 2020.

The documents do not provide details about what might happen to staffing levels in St. Louis. AB InBev previously stated that operation will serve as the North American headquarters for the combined company.

Brand Management

The information also defines the brands that will be under the umbrella of the world’s largest brewer. It will sell the following in the U.S.:

10 Barrel

Bass

Beck’s

Best Damn

Blue Point

Breckenridge

Bud Light

Bud Light Lime

Budweiser

Busch

Busch Light

Elysian

Four Peaks

Golden Road

Goose Island

Hoegaarden

Leffe

Lime-A-Rita Family

Michelob Ultra

MixxTail

Natural Light

Oculto

Rolling Rock

Shock Top

Stella Artois

Even though the current brewers of Budwieser and Miller Lite are coming together, one company will not be controlling those brands. As part of the effort to gain regulatory approval in the U.S., AB-InBev previously announced plans to off-load the Miller label to MolsonCoors.

Overall the AB InBev-SAB Miller combination will have more than 400 beverage brands throughout the world.

Emerging Markets

AB InBev’s efforts to gain a presence in some emerging global beer markets is one of the main reasons behind the combination. And the big prize for the Belgian-based company is Africa, where it does not have significant operations.

AB InBev says the global headquarters for the combined company will be in Belgium

Credit AB InBev

The documents show AB InBev officials believe SABMiller has “the greatest exposure to developing markets of any international brewer.” The company is number one in beer market share in several African and Latin American countries.

Not a Done Deal

There are still several steps to be carried out in the next few weeks before the world’s biggest beer deal is completed.

The big day is shaping up to be Sept. 28. Shareholders for both companies are expected to meet separately to vote on the deal. Those sessions are expected to begin around 3 am St. Louis time.

A court hearing to rubber-stamp the transaction process in the United Kingdom is set for Oct. 4. SABMiller is currently headquartered in London.

Then the aspect of the complicated deal to essentially move the brewing rivals under one corporate umbrella in Belgium is expected to close on Oct. 10.

Related Content

Everyone knows St. Louis is a beer city as much as a river city or Gateway city or 1904 World’s Fair city. But not everyone has the encyclopedic knowledge of the history of brewing in St. Louis that the second edition of “St. Louis Brews” provides.

“St. Louis Brews: The History of Brewing in the Gateway City” features a chronology of brewing history in and around St. Louis; profiles of over 100 local breweries; biographies of the household names Busch and Anheuser; and, new to the second edition, an expansive survey of the city’s prospering craft beer scene.

The much anticipated bid from InBev for the St. Louis brewery came through Wednesday at $65 a share. The A-B board says it will be considering the proposal carefully.

In a statement Wednesday, A-B said: "The board will review the merits of the proposal consistent with its fiduciary duties and in consultation with its financial and legal advisers. The board will pursue the course of action that is in the best interests of Anheuser-Busch's stockholders." The board is expected to make its decision regarding the deal in "due course," it said.